Mirror Protocol makes it possible to invest in traditional assets through the use of synthetic tokens, without actually owning these assets. Using a series of decentralized oracles, these synthetic tokens get the current value of a traditional asset such as a stock on the stock exchange. In this way, anyone in crypto can also invest in traditional assets. Invest in Google, Amazon or Tesla on the blockchain thanks to the use of the Mirror Protocol.
- 1 What is Mirror Protocol (MIR)?
- 2 Vision and Mission Mirror Protocol (MIR)
- 3 Mirrored Assets (mAssets)
- 4 How does Mirror Protocol work?
- 5 $MIR Token
- 6 Trade MIR Tokens
- 7 History Mirror Protocol
- 8 Meme contest
- 9 What is the price of the MIR token?
- 10 Where can you buy the MIR token?
- 11 Conclusion
What is Mirror Protocol (MIR)?
The Mirror Protocol (MIR) is a DeFi protocol built on Terra’s blockchain that allows the creation of ‘synthetics’ tokens. These tokens are also known as Mirrored Assets or mAssets. This is accomplished by matching prices of the real-world assets to on-chain tokens. By using smart contractsthe price of these tokens is always a representation of the current value of these shares. This representation is synthetic in nature, meaning that they are not physically backed by a particular asset such as a stock. They only track the current value of this asset. This allows you to buy and trade shares on the blockchain, instead of the traditional stock exchange. Think of Google, Amazon, Netflix and of course Tesla.
Because the protocol is built on Terra’s blockchain, it can operate cross-chain and mult-chain. For example, users can access the Binance Smart Chain and the network of Ethereum with the protocol of Mirror.
Synthetic tokens are different from tokens backed by a particular digital asset. Although both are price-related and take this information from the real-world, for example the price of gold, they both reach this value in different ways. These synthetic tokens are a representation of certain assets, without owning them themselves. They get this current price presentation from the traditional exchanges thanks to the use of oracles and smart contracts.
Vision and Mission Mirror Protocol (MIR)
There is still great division worldwide when it comes to financial options. Depending on your location and status , you have government restrictions when it comes to availability and access to certain financial resources and assets.
People outside America and Europe are therefore often excluded from investing in American traditional assets. Governments have different legislation and the step to the stock exchange is many times more complex and is often made impossible. In addition, there are often high transaction costs in these traditional markets. As a result, even some Americans and Europeans are excluded due to lack of financial resources, or lack of knowledge how to enter this market.
The Mirror Protocol (MIR) therefore aims to integrate traditional assets into blockchain technology to give people worldwide the opportunity to invest in these synthetic tokens. This way everyone can participate in this traditional market.
Decentralization is one of the main features of blockchain technology. Making this new financial market possible for everyone worldwide, regardless of your location and/or class. Unfortunately, there is still division when looking at investment opportunities in the stock market.
Investing in crypto can be done regardless of your physical location, but when investing in stocks you are still tied to your place of residence. If you are not in America, it is much more difficult to invest in American stocks, for example. By integrating the Mirror Protocol, the price is tracked through these synthetic tokens and anyone worldwide can compete with the successes of these stocks and bonds, without actually owning them. Bringing these to the blockchain will allow people from Europe, Asia and even Africa to invest in these US stocks. Everyone can access these markets via this on-chain protocol.
By bringing these synthetic tokens and price representation to the blockchain, you no longer have to invest in an entire stock. Fractional investments are a hallmark of blockchain technology. You never have to buy a full token or coin, but you can even invest in your favorite crypto currency for as little as 10 euros.
By bringing the reflection of traditional assets to the blockchain, you can already invest for low amounts in stocks such as Tesla or Google. This lowers the barrier to this traditional market and opens up opportunities for all investors interested in these assets.
Blockchain technology and especially the world of decentralized finance (DeFi) is characterized by free trade without anyone having to verify his or her identity. When you want to invest in shares, you must verify your identity with the relevant financial institution. Thanks to the Mirror Protocol, you can invest in these large shares, without having to disclose your identity to these large government bodies. As a result, you retain control and control over your investments.
Mirrored Assets (mAssets)
Mirrored Assets (mAssets) mimic the pricing behavior of real-world assets, giving investors worldwide access to trade these assets without actually owning them. These tokens are therefore a representation of the current value and thus form a mirror of the real-world assets. An advantage here is that you do not have to deal with complicated title deeds and regulations from other authorities. This way you can benefit from price developments in a completely decentralized way.
How does Mirror Protocol work?
These mAssets can be created and traded directly from your wallet . But to create these Mirrored Assets, you have to provide a collateral. This is 150% of the value of the assets being secured. This is done in TerraUSD or in other mAssets.
Pricing is obviously crucial when using synthetic tokens. That is why a lot of attention has been paid in its development. In the Mirror Protocol, the value is determined by decentralized price oracles that collect off-chain data to determine the current value of the asset in question.
This is based on the Band Protocol to access a whole network of decentralized oracles to work as accurately as possible. These oracles are updated every 30 seconds and are thus continuously updated through a range of data providers. By working with different decentralized oracles, you reduce the chance of dependence on one source, making you less susceptible to manipulation. When you work with one oracle and it is hacked, the price can unjustly take on unprecedented proportions.
The Band Protocol currently monitors more than $66 million TerraUSD (UST) in locked assets in the Mirror Protocol.
MIR token is an ERC20 token on the Ethereum blockchain with a total max supply of 370,575,000 MIR tokens. These will be distributed and released over a period of 4 years. Of this, 54.0 million tokens were made available for the Genesisblock of the protocol, 66% of which was immediately distributed to the community.
After 4 years, all MIR tokens will be distributed according to this distribution key:
- Airdrop: 4.9% – 18.3 million tokens
- LUNA staking reward: 4.9% – 18.3 million tokens
- mAsset LP Strike: 45.1% – 167.27 Million Tokens
- MIR LP Strike: 10.4% – 38.6 Million Tokens
- Community: 34.6% – 128.1 million tokens
The protocol rewards investors who stake MIR tokens. These fees are paid with, among other things, the withdrawal costs of your tokens. Liquidity providers also get a reward in the native tokens. Mining these Mirrored Assets requires collateral with a value ratio of at least 150%. As the value of this asset increases, you will have to add tokens to your collateral so that this percentage remains at a minimum of 150%.
The native Mirror Token (MIR) has a governance function in the protocol. Only investors who are staking their MIR tokens can vote and join the protocol. How much their vote weighs depends on how many MIR tokens they hold. With each vote, a user will be able to choose how many tokens he/she wants to bet.
These new proposals can be requested by any user. Once submitted, the community will be able to vote on this poll for a specified time period. If it meets the conditions, the new proposal will be approved and included in the protocol.
Trade MIR Tokens
There are several ways to mint and trade MIR tokens. Since the Mirror Protocol originated on Terra’s blockchain, it makes efficient use of TerraSwap. But in addition, the protocol also has their own Mirror Web App.
The protocol uses TerraSwap for trading MIR tokens. It is an Automated Market Maker (AMM) inspired by Uniswap and using smart contracts on the Terra blockchain. Mirror uses TerraSwap to realize UST trading pairs (Terra USD) for both these mAssets and the MIR tokens. This enables decentralized on-chain operations for the various assets of the Mirror Protocol.
Mirror Web App
In this application of the protocol, users can mine and trade synthetic assets themselves. The platform simplifies the process and ensures that anyone, even without any experience, can create these assets on the blockchain. You connect to your Terra wallet, after which you can start trading, borrowing or even farming your assets.
In the example above, you can see that traditional stocks exist on the blockchain, such as Google, Apple, Microsoft, Netflix and even Twitter. The TerraSwap price is the current price of this share thanks to the use of these oracles. So if you want to farm or mint these assets, you have to pay collateral of 150% of your own investment.
History Mirror Protocol
The Mirror Protocol (MIR) was launched at the end of 2020 with the aim of providing access to traditional financial assets for everyone. Originally, it was launched exclusively on the Terra Network blockchain. Still, the team decided to expand their services into the Ethereum ecosystem to increase investor access. This also resulted in better liquidity.
At the beginning of 2021, the community organized a meme contest to raise awareness for the Mirror Protocol. MIR token holders were encouraged to enter this competition through the official forum. Anyone could participate by making a certain number of tokens available. This amount was used as prize money.
During 7 days, everyone could participate by making a meaningful and funny meme about the Mirror Protocol, think of a photo, video or even a GIF. It was then distributed across all social media channels to promote the protocol. In total, 30 winners were announced and 1,900 tokens were distributed as prize money.
1st: 300 MIR
2nd: 200 MIR
3rd: 100 MIR
4th-30th: 50 MIR each
What is the price of the MIR token?
If you want to invest in the MIR token, a good start is to know what the price is. If you are already going to trade, you also want to make a profit. You can make a technical analysis to see what the best buy or sell moment is.
The MIR token was withdrawn from CMC on April 12, 2020 at a price of $1.1026. Within half a year, this token has already reached its preliminary ATH on April 10, 2021 with a price of $12.86. After that, the price dropped again quite quickly and between August 2019 and October 2020 the price was low with mainly red numbers. With the lowest quoted price at $1,0127. Then the price regained a more positive momentum and rose to $11.64 in April 2021. At the time of writing, early October 2021, the price is $3.4507.
At CoinMarketCap , he is just short of the top 250. I think this coin has a good prospect, especially if Bitcoin continues to rise in 2021. I think it could experience a good price development. If you want to invest in this coin, it is important to do your own research.
Where can you buy the MIR token?
The MIR token is for sale on Bitvavo . Bitvavo has included this coin in its offering at the beginning of September 2021. Most leading CEXs also offer this coin, such as Binance or Gate.io. There are also many liquidity pools on DEXs such as Uniswap . If you live in the Netherlands or Belgium, Bitvavo is a very convenient option. You can click on the widget below, then you can immediately buy the MIR token.
The goal of blockchain technology is to provide the entire world with access to all financial markets. Until now, the world was divided on the basis of technology, geographic location and also government regulation. Thanks to the blockchain, more and more people are gaining access to this new financial world and everyone can invest in their favorite crypto. But what if you are mainly interested in traditional assets as we know them on the American stock exchange?
The Mirror Protocol (MIR) has a solution for this thanks to the use of synthetic tokens. Thanks to the various oracles, the protocol can make a price mirroring of regular stocks and bonds and start using them in blockchain technology. In this way, every investor can enjoy the price developments of these assets, without actually owning them. In this way someone from Africa can also benefit financially from the positive price developments of, for example, Apple or Amazon.
Without this protocol, this would never be possible. It was only launched at the end of 2020 and it is still in its infancy, but it has already been able to add beautiful mAssets to their list in a fairly short time. As the crypto market matures and more and more people find their way to crypto, the Mirror Protocol will also gain sufficient prestige due to the union of the traditional financial market and the crypto market.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com